In Computing GDP, Market Prices Are Used to Value Final

question 9

Multiple Choice

In computing GDP, market prices are used to value final goods and services because

• A) market prices reflect the values of goods and services to the buyer.
• B) market prices do not change much over time, so it is easy to make comparisons between years.
• C) if market prices are out of line with how people value goods, the government sets price ceilings and price floors.
• D) None of the above is correct; market prices are not used in computing GDP.

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Definitions:

Scale 1:1

A drawing or model scale where one unit in the drawing or model is equal to one unit on the actual object, representing a real-life size.

Abbreviation R

Commonly represents "Radius" in technical drawings, indicating the measure of the distance from the center of a circle to its perimeter.

Concentric Circles

Circles that share the same center point but differ in radius.

Eccentric

Related to a mechanism or part of it that is off-center or not in the normal or expected position, often causing a deviation or irregular motion.